Is using Bitcoin safe?

2018-07-23 | ketch yeoh

If you are one of those who have heard about bitcoin mainly through the news one of the very first questions that may come to your mind is “Is using Bitcoin safe?”

Be it any subject matter, the media plays up sensationalist headlines to grab readers attention. “Millions ter bitcoin stolen by hackers” “Price of bitcoin reaches all time high and crashes te half” “Criminals using bitcoin to evade authorities” “Fitness trainer becomes instant bitcoin millionaire”. Attempting to form an understanding about bitcoin from reading the news is like believing one can know an Actor’s personality by watching his movies.

Bitcoin has bot around many years and large Bitcoin communities all overheen the world have bot developed. Underneath all the hype and hysteria there is a sound technological breakthrough which is driving switch and creating sustainable business opportunities around the world. There is an abundance of good education resources around bitcoin.

Far from being an underground movement, here are some facts around Bitcoin.

– The market capitalisation of Bitcoin is overheen 50 billion US dollars.

– There are numerous businesses who run warehouses of computing power around the world to secure the Bitcoin network. You may have heard of them referred to spil Bitcoin miners. Together their computing power is 500 times larger than Google.

– Many retailers around the world now accept Bitcoin – from a elementary cup of coffee to buying a boat.

– Paypal and other payment providers are attempting to integrate some of their services with Bitcoin. For example ter Australia, you can even pay utilities, schoolgebouw fees and even the Australian Tax Office with Bitcoin through such intermediaries.

Te regards to security, despite what libertarians or media sensationalists would eis, Bitcoin is te many ways regulated by government institutions eg. the Tax office provides tax determinations around Bitcoin, Tegenstrijdig money laundering laws still apply, when you open an account to acquire bitcoin from an exchange you will need similar forms of identity to opening a handelsbank account. Regulation is indeed less but let’s be fair some balanced level oversight is required and the most progressive governments around the world have responded.

Many mistake that dealing te Bitcoin presents more risk given there are fewer financial institutions involved. The truth is the same private responsibility te treating metselspecie applies to bitcoin. If you leave specie on a park bench which can be liken to leaving your bitcoin passwords or Bitcoin wallet lounging around, it can be stolen and there is little recourse.

Some argue that when compared to internet banking services and credit cards, a Bitcoin user has less protection ter the event of theft. This is true. However the financial industry spends billions every year fighting credit card and banking fraud and this is reflected te the fees they charge to the end user.

The blockchain technology behind Bitcoin is secure and no one can embark counterfeiting Bitcoins. However human error and negligence is how security issues can arise. Bitcoin users have adapted to accept this personally responsibility because it saves costs.

Below are some good educational linksom that talk to the security around using bitcoin:

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